MAS unlikely to ease monetary policy on Jul 26, even as June surprises with softer inflation

SINGAPORE’S central bank is likely to keep monetary policy settings unchanged at its next meeting on Jul 26, said economists, even as latest inflation figures on Tuesday (Jul 23) came in lower than expected.

In June, headline inflation surprised by falling to a three-year low of 2.4 per cent. But core inflation – which excludes private transport and accommodation, and which the central bank focuses on instead – was just slightly lower than expected, at 2.9 per cent.

The official full-year forecast range for headline inflation will be reviewed and updated in Friday’s monetary policy statement, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Tuesday.